People who become rich usually build their fortune over a long period of time and live below their means.
Profile of rich people
They don’t necessarily earn a huge income.
They spend less than they earn.
They save their money and make their savings grow.
They manage their finances carefully.
They seize investment or business opportunities when they arise.
They don’t necessarily drive luxury cars.
They may live in modest homes.
9 rules to follow
1-Live below your means
Live on less than you earn. Test yourself by cutting your spending as much as you can over several months. You’ll learn exactly how much you really need to be comfortable.
2-Stop trying to impress others
Have the conviction that being financially independent is more important than looking like you’re wealthy.
Put the amount you want to save into your budget. To do this, subtract from your net income a set amount that you’ll deposit each week or month into an investment account so it can grow.
In addition, try to set 5% to 10% of your net income aside into your emergency fund. The sooner you start saving, the more it will pay off.
Protect your income stream with disability, health and life insurance.
Protect your property and belongings with home and auto insurance.
8 – Adopt good habits
Take time to take care of your health, because it’s your most valuable asset. By staying healthy, you maintain your ability to work.
Take good care of your belongings so they last as long as possible.
Use what you already have. Don’t shop just for the pleasure of it.
Avoid spending on services you could be doing yourself.
9 – Change your spending habits
Don’t kill time in shopping centres or stores.
Make a list of what you really need and plan your purchases ahead of time. Save up the money you need for your purchases instead of borrowing it. This will give you time to hunt for sales and you won’t end up paying interest.
Buy used cars, furniture, clothing, etc. New things lose value as soon as you take them out of the store—don’t take the depreciation hit. To find out more about just how much you can save by buying used cars instead of new ones, seeBuy a carpage.
Create an exchange network with family and friends for CDs, books, clothing, etc.
Regardless of how much money you make, if you never save any of it, you will never build up any substantial amount of wealth. It is not how much you make but how much you keep that matters.
They spend less than they earn.They save their money and make their savings grow.They manage their finances carefully.They seize investment or business opportunities when they arise.
Basic money management starts with this rule. If you always spend less than you earn, your finances will always be in good shape. Understand the difference between needs and wants, live within your income, and don't take on any unnecessary debt. Simples.
It's a simple formula that helps estimate the time for an investment to double in value. Divide 72 by the annual rate of return on your investment to get the approximate number of years it will take to double your money. For instance, with a 6% return, your money will double in about 12 years.
Sethi says he saves 10% and invests 20% of his gross income minimum. In his book, 'I Will Teach You to Be Rich,' Sethi suggests saving 5-10% and investing 5-10% as part of a Conscious Spending Plan (aka budget).
Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.
Remember that it's not just about making as much money as possible—it's also about making your money work for you. One of the easiest ways to do this is to invest it in assets such as real estate or stocks and bonds. That way, your money works for you even when you're not actively working.
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Introduction: My name is Lilliana Bartoletti, I am a adventurous, pleasant, shiny, beautiful, handsome, zealous, tasty person who loves writing and wants to share my knowledge and understanding with you.
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